Explorer New Zealand Oil and Gas (NZOG) went into a brief
trading halt yesterday, before saying its share price had
been affected by an earlier geologist's report on its Matuku,
offshore Taranaki prospect being drilled by the rig Kan Tan
Its shares went on an hour-long trading halt yesterday,
before the company announced it believed its shares were
adversely affected by the geologist's report released on
Tuesday. The report had said '' ... sands were found to be
porous, but there were no significant gas or oil shows''.
NZOG's share price had slumped more than 7%, from 81c on
Tuesday to 60c yesterday.
''Until drilling is complete and testing analysed, geologists
have not formed a complete view about the well or the
implications for the play type in the Kahurangi trough, which
was thought to be a source kitchen for a success case at
Matuku,'' NZOG chief executive Andrew Knight said in a
He said ''most wells will not make commercial discoveries of
oil and gas''.
The Matuku well, in 130m of water, was yesterday at a drill
depth of 4307m and drilling was continuing towards the target
depth of 4750m.
New Zealand Oil and Gas is involved in drilling in the Tui
permit at Pateke and Oi, and next summer at the Kaheru
prospect, off south Taranaki.